The problem of identifying suppliers with a high risk of failure is becoming more serious as talks of interest rate hikes and free trade agreement dissolution become more common. While this blog considers suppliers in an electronics supply chain, the risks and mitigations described apply more broadly. Most companies have strategies and indicators for dealing […]
Predicting Supplier Failure Read More »
In this article, I summarize some points from a lecture that I gave at Hong Kong University in 2014; it drew on a blog I wrote in 2013. I repeat some of the ideas from that blog here because I believe they are critically important for world-class companies. I was focused on supply base design,
8 Supply Chain Design Rules for Engineers Read More »
Is there such a thing as an ideal purchasing professional and, if so, what traits do they possess? I believe there is such an ideal – I have met several of them. In my work with price and organizational benchmarking, I meet many procurement individuals from a variety of companies. I have been exposed to
The Ideal Purchasing Professional Read More »
Last month I made a presentation to the IEEE Consumer Electronics Group in San Jose, CA. I asked this group of engineers a very important question. It was important because of the implications that designer choices have on the supply chain. I started with my left hand holding the top of a slinky and my
Supply Chain Structure Should Not Baffle Electronics Design Engineers Read More »
Readers who have followed my writing in blogs and whitepapers may find this blog out of character. Its premise is that the value delivered by EMS companies (contract manufacturers) is higher than the amount they charge for services. While my message is pay for value, it often comes across as too many are paying too
The True Value of Contract Manufacturers Read More »
Security of supply is one of the most critical priorities of any supply chain; cost and compliance are the other top ones. Given how critical security of supply is, I am often surprised by how inadequate many due diligence programs are at getting to the heart of risk or ensuring that adequate agility exists to
Supply Chain Security & Maslow’s Hierarchy of Needs Read More »
In part 1, I talked about the influence design engineers can exert on procurement and the supply chain. This is often a negative influence that comes without proper education or information. What do I want top designers to know about supply chain design? Leverage Leverage is a critical factor in negotiations. Without it, you take
What Engineers Must Know About the Supply Chain, Part 2 Read More »
Accenture and others have reported that company stock prices can dropanywhere from 7.5 to 12 percent following severe supply chain disruptions. PriceWaterhouseCoopers estimates this drop at 9 percent and says that, for two-thirds of those companies, stock performance will still lag competitors a year after the disruption. If this is the case, why do we
What Engineers Must Know About the Supply Chain, Part 1 Read More »
I find one reality TV show interesting because it actually represents reality. …At least, it’s the reality that I see through the supply chain and procurement lens of Freebenchmarking.com and Component Cost Estimator as it mirrors typical purchasing negotiations. The show is Pawn Stars, about a family-owned pawn shop in Las Vegas. In this show,
Pawn Stars: Lessons for the Supply Chain Read More »
In a previous blog, I discussed some of the myths surrounding the relationship between price and volume. Another often misunderstood subject is “security of supply.” In analyzing our clients’ component spending, we frequently see unnecessary costs incurred that create an expensive (and often false) sense of “supply security.” Lytica’s freebenchmarking.com reports reveal the exorbitant dollars
Purchasing Strategies: Security of Supply Read More »
